Modelling artificial intelligence in economics

Artikel

We provide a partial equilibrium model wherein AI provides abilities combined with human skills to provide an aggregate intermediate service good. We use the model to find that the extent of automation through AI will be greater if (a) the economy is relatively abundant in sophisticated programs and machine abilities compared to human skills; (b) the economy hosts a relatively large number of AI-providing firms and experts; and (c) the task-specific productivity of AI services is relatively high compared to the task-specific productivity of general labor and labor skills. We also illustrate that the contribution of AI to aggregate productive labor service depends not only on the amount of AI services available but on the endogenous number of automated tasks, the relative productivity of standard and IT-related labor, and the substitutability of tasks. These determinants also affect the income distribution between the two kinds of labor. We derive several empirical implications and identify possible future extensions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Journal for Labour Market Research ; ISSN: 2510-5027 ; Volume: 56 ; Year: 2022 ; Issue: 1 ; Pages: 1-13

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Consumption; Saving; Wealth ; Aggregate Factor Income Distribution ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Technological Change: Choices and Consequences; Diffusion Processes ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
• Subject: Artificial intelligence ; Automation ; Labor economics ; Mathematical models

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gries, Thomas ; Naudé, Wim
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2022

Further information

• DOI: doi:10.1186/s12651-022-00319-2
• Handle: http://hdl.handle.net/10419/271309
• Last update: 10.03.2025, 11:44 AM CET